All SHEILA BAIR Articles

Regulators should focus on reducing interconnectedness between the large money center banks and clarifying bank wind-down roadmap plans, known as “living wills,” to reduce the necessity of taxpayer bailouts to large “too-big-to-fail” banks in future crises, former Federal Deposit Insurance Corp. Chairman Sheila Bair said in a speech at Fordham Law School Monday.

Former Federal Deposit Insurance Corp Chairman Sheila Bair said an abrupt end to the current unlimited insurance on non-interest bearing bank accounts at the end of the this year could rattle the banking system and put smaller institutions in danger.

Bair, who left the FDIC in July 2011, was there for the beginning of the unlimited guarantee program during the financial crisis in 2008. She said in an interview with CFO Journal that the program was meant to be temporary, but a phase-out that staggers the end for small banks and large banks may be more stable for the banking system and the $1 trillion of corporate deposits currently protected under the guarantee. Right now, the program is slated to expire for all banks Dec. 31.